Futures Market News
Silver futures drive after steep plunge
May 09, 2011 08:55 AM
After losing more than 25 percent of their value during the first week of May, silver futures pulled themselves up by their bootstraps on Monday morning.
MarketWatch reports the first day after silver futures' worst week in more than three decades saw a modest increase. During the run up to the end of April, silver futures were on a tear as they approached two milestones not seen since January 1980: surpassing the $50 psychological barrier and the $50.35 record price.
"Precious metals will likely remain in focus following last week’s volatility," Ben Potter, markets strategist at IG Markets in Australia, told the news service. "Aggressive traders may look for short-term long opportunities in silver. The precious-metals complex may also be boosted by the political unrest over the weekend in Syria, Egypt and Bahrain."
At 9:35 a.m. on Monday, silver futures climbed 5.83 percent, a $2.058 surge to $37.345 per troy ounce.
"We think that the early May sell-off has recalibrated the markets to more reasonable, but still excessive, valuations," according to the monthly commodity review for May written by MF Global analysts. "As a result, we suspect that there may be a little bit more to go on the downside before things start stabilizing."
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